NEW ORLEANS -- Although video-on-demand (VoD) and broadband Internet service hogged most of spotlight this week at NCTA convention here, other new digital cable products and services also stepped out of shadows. Many exhibitors, other vendors and panel speakers also focused on prospects of several coming services, especially HDTV and home networking. They also discussed other products and services in pipeline, including IP telephony, retail cable set-top boxes and even personal video recorders (PVRs), as industry started looking forward to next big product rollout after VoD this year. “"The business is far more competitive now,” said AOL Time Warner CEO-designate Richard Parsons on opening panel. “But we have far more to offer and the market is expanding.”
FCC denied EchoStar application for reconsideration to modify its Ka-band authorization. Commission said EchoStar hadn’t offered any new facts or evidence. FCC also denied request to reconsider order assigning Celsat America Ka-band spectrum. Commission said it saw no reason to give EchoStar priority.
FCC heard 2 clear messages when it asked whether it should expand local number portability (LNP) and related 1,000-block number pooling requirements for rural telcos. In comments filed May 6, rural telcos and unlikely ally Western Wireless argued that it would be cost prohibitive to make them offer LNP if no competitors even asked for it. On other side were state regulators and competitors such as WorldCom that reminded FCC that LNP and pooling were needed to accomplish 2 important goals -- conserving telephone numbers and encouraging competition -- and the more carriers offering them the better.
PanAmSat received authority from FCC to replace Galaxy 8 satellite, which is experiencing subsystem failures at 95 degrees W. Commission also granted PanAmSat request to use circularly polarized transponders on replacement satellite.
NEW ORLEANS -- Some state regulators said Wed. they were concerned about FCC’s tentative conclusion that cable modem and DSL were “information services,” specifically that doing so would open door for offerings such as cable IP telephony to get off scot-free in terms of regulation. Speaking at NCTA convention here, Peter Bluhm, dir.-regulatory policy, Vt. Public Service Board, laid out several hypothetical scenarios in which illegal activities, including fraud, were taking place. He then questioned whether any of those things would be prosecutable or whether consumers would be afforded protections if those calls took place over cable line, rather than phone line. Several members of audience said FTC and other agencies had jurisdiction and authority to prosecute such offenses and that new regulations weren’t necessary. But regulators on panel generally disagreed, saying FCC needed to either preserve current regulatory regimes or create new “bucket” in which to place broadband services. “Are any of those consumer protections we can do without if the wire moves over to cable?” Bluhm asked: “I don’t really know that a telephone call made over a cable system has those protections.”
American U. in Washington plans to retire about half of its landline phones in fall and shut down campus Ethernet connections as it shifts to wireless LAN to carry voice calls, data and Internet services. While not new technology, wireless LANs -- also known by their specification number 802.11(b) or slang Wi-Fi -- have potential to be replacement technology for conventional voice and data connections and, unlike those traditional landline counterparts, it operates almost entirely without regulation. Industry itself isn’t subject to regulatory scrutiny other than requirement that antennas and routers meet standard noninterference requirements of any electronic communications device. Even airwaves services use are unlicensed, meaning entrepreneur can set up handful of football-sized $75 antenna arrays and service multiple dwelling unit (MDU) or office building with broadband tapped from single T-1 line.
Oklahoma City indicated Cox’s decision to stop collecting and paying franchise fees on cable modem revenues in light of FCC declaratory ruling could affect its franchise renewal and result in penalties. City Council adopted resolution Tues. calling Cox decision “premature” because FCC hadn’t reached final decision on cable modem classification. City spokeswoman said cable operator’s decision could lead to penalties if it were determined that company was in violation of franchise agreement on payment of fees on gross revenue. City has projected that cable modem fees would amount to $500,000 of total $3.6 million franchise fee this year, she said.
NEW ORLEANS -- Beltway perceptions of new media technologies may be out of step with cable industry reality, Robert Pepper, chief of FCC Office of Plans & Policy, said on NCTA convention bureau chiefs panel. Pepper said walking convention floor offered new perspectives: “In D.C., there’s a lot of hand wringing about broadband. But when you talk to suppliers and others in the industry, they are thrilled. Broadband seems to be being adopted more rapidly than expected.”
FCC has no legal authority or diversity or competition- based reason to further limit local radio ownership consolidation, NAB said in latest round of comments (MM 01- 317). It said limits set by Congress in 1996 Telecom Act “are definitive.” In fact, NAB said, FCC should be considering whether even current limits are justified.
Rural Telecommunications Group (RTG) criticized House passage late Tues. of HR-4560, which would direct FCC to delay 700 MHz auctions beyond June 19. House passed on voice vote, under suspension of rules, legislation that would indefinitely delay both upper and lower band auctions for 700 MHz (CD May 8 p1). Rural carriers have been urging FCC not to delay auction, particularly for Ch. 52-59. Bill was sponsored by Commerce Committee Chmn. Tauzin (R-La.), ranking Democrat Dingell and 50 other members of committee. “We are incredibly disappointed that Congressman Tauzin proceeded in this manner,” RTG Gen. Counsel Carri Bennet said. “He has managed to hoodwink folks into believing that a delay of this auction will cure everything that ails spectrum policy.” RTG said that in lower 700 MHz band, 734 licenses would be awarded using metropolitan statistical area/rural statistical area licensing system. Of those, only 8 TV stations on Ch. 52-59 would have to be relocated in states west of the Mississippi, not including Cal. and Tex., RTG said. It said that meant that in most cases in lower 700 MHz band, new licensees could use new spectrum without undertaking spectrum clearing arrangements with incumbent broadcasters. At our deadline, FCC was expected to rule shortly on CTIA application for review of recent Wireless Bureau decision that upheld June 19 auction date. Several industry sources expect FCC to announce brief delay of auctions this week, possibly up to 6 months. However, one option still in play this week was scenario in which all or part of Ch. 52-59 spectrum could be held on time and upper band bidding would be postponed, several sources said. Wed. at 6 p.m. was filing deadline for prospective bidders to submit short forms to FCC that notify Commission on which licenses companies would like to bid and provide financial information.